Leighton falls in step with ACS

With
Leighton
’s $409 million loss already well-telegraphed by the company this month, the biggest surprise yesterday was news that the group was shifting to a new financial year, ending on December 31, to “align" itself with its new owners, Spanish construction group ACS.

Leighton plans to have a “transitional" financial year from July to December before shifting to the new reporting period, starting in January next year.

Hochtief, Leighton’s largest shareholder with a 54 per cent stake, and ACS, Hochtief’s biggest shareholder, both have financial years ending on December 31.

Although Leighton chief executive
David Stewart
argues there has been no change in Leighton’s relationship with Hochtief since ACS acquired the German group this year – “Hochtief continue to behave as they have behaved for the whole time towards us" – analysts said the change in dates signalled the development of a closer relationship between Leighton and its biggest shareholders.

“It’s another step towards a more collaborative approach," said Ben Brownette, analyst at the Commonwealth Bank.

Once Leighton has the same financial years as ACS and Hochtief, it may be easier for the companies to bid together on large projects such as NSW’s $7 billion North West Rail Link, Mr Brownette said. The rail project is believed to have attracted serious interest from international companies.

Mr Stewart stressed yesterday ACS would remain at arms length from Leighton, arguing it had “no business" to ask anything of the Australians. But ACS is expected to monitor Leighton with a firmer hand than Hochtief, which did not interfere in day-to-day operations, and take action if Leighton does not return quickly to profitability.

Leighton is still waiting for a board member to be appointed by Hochtief to replace Hochtief nominee Peter Noé, who resigned from the German group. Hochtief has already replaced one of its four nominees on Leighton’s board – former chief executive Herbert Lutkestratkotter – with its new chief executive officer, Frank Stieler.